Chesterfield Borough Council comes under question over £116m of debt

Chesterfield Borough Council’s Treasury Management Annual Report for 2021/22 shows that in the last financial year, the authority’s net borrowing was recorded as being £116m – which is 25 per cent up from £93m in 2020/21.

Councillor Emily Coy questioned this in a meeting of full council, stating: “Can you please explain your attitude towards the rising debt in your strategy going forward? Do you seek to reduce the debt as soon as possible, or are you unconcerned by the increasing levels of debt?”

Deputy leader Amanda Serjeant responded by saying that the authority’s borrowing was ‘well within our net borrowing requirement’ and it had repaid more than £1million.

“When we borrow for things like capital projects we’re also investing in our town,” she continued. “It’s about creating jobs, it’s about making sure that Chesterfield is open for business. It’s about doing exciting projects around our town centre. But we always ensure that the borrowing is prudential and this is something that we take very seriously.”

The council’s capital expenditure was £31.4m in 2020/21, which rose to £58m in 2021/22.

Labour leaders said cash had been borrowed to fund an ambitious programme of capital projects, giving an example of the recently opened Northern Gateway Enterprise Centre, which would boost the area’s economy.

But Lib Dem Coun Coy commented: “Local authorities do of course borrow to invest in capital expenditure, but I think my concern is the sheer volume of capital expenditure projects that have been invested in by this council, with the best of intentions, to improve our town, as each one of them clogging up a bit more debt and although this council may be within the limits that it sets itself for debt it’s more about principle, about how this Labour group’s attitude to debt.”. She continued: “Debt will continue to rise because this Labour council will continue to spend and spend and spend.”